Selling and administrative expenses in the second quarter were $1.69 billion, or 21.0 percent of net sales, including $87 million in net pre-tax charges primarily related to store closures, asset impairments, and employee-related costs partially offset by the gain on sale of assets. Excluding these items, selling and administrative costs were $1.60 billion, or 19.9 percent of net sales, including an approximate 30 basis point negative impact from lower fuel sales. In the second quarter of fiscal 2012, selling and administrative costs were $1.66 billion, or 19.7 percent of net sales last year. The 10 basis point decrease in the adjusted selling and administrative expense rate as a percent of net sales in the second quarter of fiscal 2013 reflects a change in business mix which was partly offset by the impact of higher corporate reserves related to surplus properties.

Net interest expense for the second quarter was $141 million and included $22 million in pre-tax charges related to writing-off the unamortized loan costs associated with the Company’s previous senior secured credit facility. Excluding this charge, net interest expense was $119 million. In the second quarter of fiscal 2012, net interest expense was $120 million. During the quarter, the Company refinanced its senior secured credit facilities with a $1.65 billion asset-based revolving credit facility and an $850 million term loan, secured by a portion of the Company’s real estate and equipment.

SUPERVALU’s income tax benefit was $71 million, or 38.8 percent of pre-tax loss, for the second quarter, compared to income tax expense of $36 million, or 37.4 percent of pre-tax income in last year’s second quarter.

Diluted weighted-average shares outstanding for the second quarter were 212 million shares compared to 213 million shares last year. For the second quarter of fiscal 2013, diluted loss per share is computed using the basic weighted-average number of shares outstanding and excludes all outstanding stock options and restricted stock as their effect is anti-dilutive when applied to a loss. As of October 12, 2012, SUPERVALU had 214 million shares outstanding.

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